Bridgeline Digital(BLIN) - 2024 Q4 - Annual Results

Revenue Performance - Total revenue for the fourth quarter was $3.9 million, a slight increase from $3.8 million in the prior year period[22]. - Subscription and licenses revenue for the fourth quarter was $3.0 million, down from $3.1 million in the prior year period, representing 78% of total revenue[46]. - Services revenue for the twelve months ended September 30, 2024, was $3.2 million, up from $3.1 million in the prior year, accounting for 21% of total revenue[26]. - Total revenue for the twelve months ended September 30, 2024, was $15.4 million, compared to $15.9 million in the prior year[51]. - Total net revenue for the three months ended September 30, 2024, was $3,863 million, a slight increase from $3,798 million in the same period last year, representing a growth of 1.7%[72]. - Subscription and perpetual licenses revenue decreased to $3,025 million from $3,072 million year-over-year, reflecting a decline of 1.5%[72]. - Digital engagement services revenue increased to $838 million, up 15.5% from $726 million in the prior year[72]. Profitability and Loss - Gross margin for the fourth quarter improved to 69%, compared to 68% in the prior year period[12]. - Operating loss for the fourth quarter was $0.5 million, significantly reduced from $8.2 million in the same period last year[24]. - Net loss for the fourth quarter was $0.4 million, compared to a net loss of $8.1 million for the same period in 2023[50]. - GAAP net loss for the three months ended September 30, 2024, was $432 thousand, compared to a net loss of $8,063 thousand for the same period in 2023[64]. - Adjusted EBITDA for the twelve months ended September 30, 2024, was a loss of $192 thousand, improving from a loss of $309 thousand for the same period in 2023[64]. - The net loss for the three months ended September 30, 2024, was $432 million, an improvement from a net loss of $8,063 million in the same period last year[72]. - Non-GAAP adjusted net loss for the three months ended September 30, 2024, was $38 million, compared to a non-GAAP adjusted net loss of $213 million in the prior year[73]. - The company reported a basic net loss per share of $0.04 for the three months ended September 30, 2024, compared to a loss of $0.77 per share in the same period last year[72]. Assets and Liabilities - Total current assets decreased from $3,659 million in September 2023 to $2,947 million in September 2024, a decline of approximately 19.4%[61]. - Total liabilities decreased from $6,171 million in September 2023 to $5,596 million in September 2024, a reduction of approximately 9.3%[61]. - Total stockholders' equity decreased from $11,460 million in September 2023 to $10,006 million in September 2024, a decline of approximately 12.7%[61]. - Current portion of long-term debt increased slightly from $267 million in September 2023 to $282 million in September 2024[61]. Strategic Initiatives - For fiscal year 2024, Bridgeline signed 83 license sales, adding $2.1 million in annual recurring revenue, totaling $6.2 million in new customer contracts[7]. - HawkSearch launched new features including Smart Response and Conversational Search, enhancing user interaction and search accuracy[8][36]. - Bridgeline's management reported the largest sales pipeline in the company's history as they enter 2025[3]. - The company plans to focus on increasing recurring revenue and attracting new customers as part of its future growth strategy[69]. Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were $3,134 million, significantly lower than $10,818 million in the same period last year, primarily due to the absence of goodwill impairment charges[72]. - Research and development expenses for the three months ended September 30, 2024, were $1,022 million, slightly down from $1,070 million year-over-year[72]. Margins - Gross margin remained stable at 68% for the twelve months ended September 30, 2024, compared to the same period in 2023[66]. - Subscription and licenses gross margin decreased from 74% in 2023 to 72% in 2024, while services gross margin improved from 48% to 52%[66].